Issues typically employed to ensure smooth processing of payments.

IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks. This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector. Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication. Infrastructureduplication has not been limited to technology.

Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported. Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems. Inability to make informationavailable to the customer.

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Inability toprocess payment related information including invoices, purchase orders, andremittance advices.Inability totrack & trace end-to-end payments made from different channels. Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future. As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems.

This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs. As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age. Therefore, many of the today’s paymentsystems unable to cater for the high STP rates. To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry.

Within the ACH payment standard each country has developed its own”standard” format. In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards. Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically. Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.

  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks. This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector. Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication. Infrastructureduplication has not been limited to technology.

Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported. Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems. Inability to make informationavailable to the customer.Inability toprocess payment related information including invoices, purchase orders, andremittance advices.

Inability totrack & trace end-to-end payments made from different channels. Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.

Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future. As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems. This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs. As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age. Therefore, many of the today’s paymentsystems unable to cater for the high STP rates. To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry.

Within the ACH payment standard each country has developed its own”standard” format. In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards. Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically. Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks.

This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector. Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication.

 Infrastructureduplication has not been limited to technology. Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported. Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems. Inability to make informationavailable to the customer.

Inability toprocess payment related information including invoices, purchase orders, andremittance advices.Inability totrack & trace end-to-end payments made from different channels. Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future. As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems. This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs.

As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age. Therefore, many of the today’s paymentsystems unable to cater for the high STP rates. To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.

  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry. Within the ACH payment standard each country has developed its own”standard” format. In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards.

Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically. Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.

  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks. This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector.

Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication. Infrastructureduplication has not been limited to technology. Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported. Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems. Inability to make informationavailable to the customer.

Inability toprocess payment related information including invoices, purchase orders, andremittance advices.Inability totrack & trace end-to-end payments made from different channels. Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future. As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems. This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs.

As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age. Therefore, many of the today’s paymentsystems unable to cater for the high STP rates. To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry. Within the ACH payment standard each country has developed its own”standard” format. In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards.

Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically. Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks.

This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector. Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication.

 Infrastructureduplication has not been limited to technology. Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported.

Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems. Inability to make informationavailable to the customer.Inability toprocess payment related information including invoices, purchase orders, andremittance advices.Inability totrack & trace end-to-end payments made from different channels.

Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future. As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems.

This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs. As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age.

Therefore, many of the today’s paymentsystems unable to cater for the high STP rates. To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry. Within the ACH payment standard each country has developed its own”standard” format. In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards. Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically.

 Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. IssuesRelated to Existing Payment Systems InfrastructureDuplication Theevolution of isolated payments systems caused a substantial amount ofinfrastructure duplication amongst banks. This duplication includes bothsoftware and hardware, which is usually provided by various vendorsconsequently result in a high maintenance cost. This duplication concern isfurther been compounded due to consolidation within the banking sector. Mergersand acquisition principally carried out to consolidate infrastructure, whereas actually, itleads to rise in further duplication. Infrastructureduplication has not been limited to technology.

Banks back office staff aretypically employed to ensure smooth processing of payments. The infrastructureduplication results in duplication of the staff to maintain and monitor theinfrastructure and to repair incorrect payments entered in the system.   TechnologyLegacy Manyexisting payment systems that are still in use today were built 2-3 decadesago. Consequently, being outdated they are difficult to support, and in manyinstances, are running on platforms that are, or will soon be, no longersupported. Variety of issues related to the use of outdated technologyincludes:Inability torapidly make changes to payment systems.

Inability to make informationavailable to the customer.Inability toprocess payment related information including invoices, purchase orders, andremittance advices.Inability totrack & trace end-to-end payments made from different channels. Requiresame changes to be made in multiple place.A lack ofavailable crucial skills to support dated technology.Inabilityto Support Growing Volumes Manyexisting payment systems and architectures were designed and built eitherbefore the invention of electronic payments, or at a time when the growth ofelectronic payments was not projected to reach the levels that we areexperiencing today or will do in the future.

As a result, the existing paymentsystems is causing high concerns as the failure of a bank to provide assureduptime of its payment systems. This leads to multiple backlashes includingrelated loss of revenues, loss of customers, and penalty costs.   Lack of Straight Through Processing StraightThrough Processing (STP) has become a crucial as banks try to reduce thepayments processing costs. As mentioned earlier, the majority of today’spayment systems were built a long time ago, and were not designed to addressthe needs of today’s electronic age. Therefore, many of the today’s paymentsystems unable to cater for the high STP rates.

To address this issue, banksrequire employing a large back office staff either to assist in manualre-keying of transactions, or to repair incorrect entries.  MessagingStandards Large numberof existing messaging standards is one of the biggest problems of the paymentsindustry. Within the ACH payment standard each country has developed its own”standard” format.

In cross-border transactions, the SWIFT standard isprimarily used however, the variations in standards are huge, and that differswith country. In addition, SAP, Oracle, and PeopleSoft have their ownproprietary standards. Presence of multiple standards requires banks to investhigh amount in reconciliation software, even though many transactions stillcannot be matched automatically. Others: Similarly, other issues related to most of the existingpayment system used today are as follows: 1)Slow response to marketdemands 2)Lack of flexibility tobe able to offer new competitive products to their customers quickly.

  3)Unable to acquire any amount ofpayment, anytime, anyplace, and anywhere.  4)Lack of clarity, visibility, andtransparency around payments and the processing of payments. 

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